The
horizontal axis is labeled consumer goods. The vertical axis is
labeled capital goods. The graph shows three curves C D, A B, and E
F. Curve C D begins at a point marked C on the top of the vertical
axis. It goes slightly down and to the right till it reaches a
point and then goes down and to the right with increasing steepness
until it reaches point D marked on the right end of the horizontal
axis. Curves A B and E F are similar to the first curve. Point A is
slightly below point C and point B is to the left to point D. Point
E is slightly below point A and point F is to the left to point B.
Point 5 is marked above curve C D. Point 1 is marked near point A
and point 3 is marked near point B on curve A B. Point 2 is marked
between points 1 and 3. Point 4 is marked to the bottom left of
point 2 between A B and E F.
Refer to the accompanying diagram. Which of the following is the
most likely cause for a shift in the production possibilities curve
from AB to CD?
Multiple Choice
the use of the economy's resources in a more efficient way
an increase in the spending of business and consumers
an increase in government purchases of the economy's output
an increase in the quantity and quality of labor resources
The horizontal axis is labeled consumer goods. The vertical axis is labeled capital goods. The graph shows three curves
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